CMC Markets(LSE: CMCX) sharestumbled 18% last week following the release of annual results that showedsignificant profit growth but failed to meet analyst expectations. A massivedownward gap on the chart, the largest since August 2021, has pushed the shareprice of the company offering retail trading services to a two-month low.CMC Markets Shares Plunge18% Despite Profit Growth as Earnings Miss ExpectationsTheLondon-listed financial services company reportedprofit before tax of £84.5 million for the year ended March 31, 2025,representing a 33% increase from the previous year but falling short of theconsensus estimate of £90.6 million. Earnings per share reached 22.6 pence, upfrom 16.7 pence but below the anticipated 24 pence.Netoperating income rose 2% to £340.1 million, marginally exceeding thecompany-compiled consensus of £339.2 million. The firm's underlying EBITDAclimbed 12% year-on-year to £103.4 million, while the profit margin expanded to24.8% from 19.0% in the prior year."Whilethe P&L figures were below consensus, the improvement on FY24 ismarked," Jefferies analysts noted in a post-earnings assessment.Why Is CMC Markets Share PriceDown?As shown inthe chart below, the share price of CMC Market son the London Stock Exchangehad been rising sharply from its April lows. However, on Thursday, June 5, thestock dropped nearly 18% following the release of earnings, falling briefly to230.5 pence, a two-month low.At thestart of this week, on Monday, June 9, 2025, CMCX shares were down more than2%, trading at 241.5 pence. Despite the recent correction, the stock has stillgained over 30% from its April lows, having previously rallied around 60% toreach its June peak.On ayear-to-date basis, however, the stock remains in negative territory, with thecompany down just under 2% since the beginning of 2025. For comparison, theFTSE 100 index of British companies has risen more than 8% over the sameperiod.Meanwhile,another publicly listed retail broker on the London market, Plus500, has gained28% year to date. Its shares have climbed to fresh all-time highs in recentweeks, currently trading at 3,490 pence.Mixed PerformanceThe mixedperformance reflected challenges in CMC's core trading business, wheredirect-to-consumer revenue declined 12% to £149.1 million, partially offset bya 12% increase in platform-as-a-service revenue to £99.8 million. The company'sinvesting segment demonstrated stronger momentum, with net revenue jumping 31%to £44.4 million, driven primarily by growth in Australia where CMC ranks asthe second-largest stockbroker.Interestincome provided a bright spot, surging 21% to £42.5 million as the companybenefited from higher client balances and improved treasury management. Totalrevenue remained flat at £360.1 million, with trading and investing revenuedeclining slightly to £313.3 million from £320.1 million.Operatingexpenses decreased 2% to £250.0 million, though this included a one-time £4.3million charge for customer remediation in Australia following an industry-wideregulatory review. The company maintained cost discipline while continuing toinvest in technology and platform enhancements.You mayalso like: CMCInvest Revamps Pricing Structure, Free Trades More Than DoubleDividend and Board ChangesThe companyannounced a final dividend of 8.3 pence per share, bringing the full-yearpayout to 11.4 pence, representing a 37% increase and maintaining its policy ofdistributing 50% of after-tax profits to shareholders.The resultscoincided with significant board changes. DeputyCEO David Fineberg and Australia-New Zealand head Matthew Lewis will step downfrom the board after the 2025 annual general meeting to focus onoperational roles. Laurence Booth joined as Global Head of Capital Markets,while Senior Independent Director Paul Wainscott will succeed James Richards aschairman.This article was written by Damian Chmiel at www.financemagnates.com.